switch car insurance policies

When Should You Switch Car Insurance Policies?

Car insurance is essential, but you don’t have to keep the same company or policy. Choosing to switch your car insurance requires a lot of work, but sometimes it's necessary and can get you a cheaper policy or better coverage. Reviewing your car insurance each year is important, but if any of these things have happened in your life, you may think about a change.

Marriage Status

Getting married can lower your policy premium if you are under the age of 25—research shows that couples that get married and are under the age of 25 have fewer accidents. Car insurance companies consider you less of a liability, so your premium drops in price.

Home Ownership

Many insurance companies offer discounts if you choose to bundle your homeowner’s insurance and car insurance. Additionally, you may pay less in fees if you have your insurance through a company like State Farm.

Added Drivers

Getting a new roommate or moving in with your significant other is a huge change in your living situation, but what you might not know is that it also affects your insurance premiums. Most car insurance companies require you to insure everyone in your household regardless of whether you think they’ll drive your vehicle or not. This is to avoid a gap in coverage if the other members of your home need to drive your car—even in the case of an emergency. 

New Vehicle

Before you purchase any vehicle, you need to call your insurance company and determine how it’ll affect your insurance premiums. Buying a new vehicle requires full insurance until the loan is completely paid.

Credit Score Improvement

Studies show that people with lower credit scores are more likely to get in a car accident. If you know that your credit has improved substantially, ask your insurance company to review your policy to see if you’re eligible for a lower price.

Change in Needs

Paying off your car loan can feel amazing, especially since you can also see a discount on your insurance policy if you drop full coverage. Alternatively, you may consider keeping your full policy protection if you’ll be traveling more often.

Age or Experience

When a driver in the household reaches 25, you can get a discount from your insurance company because insurance companies consider that driver to be more responsible. If you or someone in your household reaches 25, you may be eligible for lower rates.

Change in Rate

You should set time aside each year to review your car insurance and call to request a lower premium. You may find that your insurance went from a $1,500 premium to $2,100 without alteration. If it seems your insurance company refuses to work with you, consider visiting a new business to find lower rates—research each company before you choose to get a policy.

Last Updated: October 12, 2017